Scenario:You have an unwanted amount recorded in the bank reconciliation for 2023. To correct this without affecting the previous year's records, you need to handle the adjustment in 2024.
Pass a Journal Entry: Record a journal entry in 2024 to reverse the unwanted amount. For example, if the amount was mistakenly debited in 2023, create a corresponding credit entry in 2024
- Reverse the Entry: Ensure the journal entry correctly offsets the unwanted amount from the current period.
This method adjusts the current records without impacting prior financial periods.
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